{"id":7824,"date":"2012-02-09T13:51:06","date_gmt":"2012-02-09T11:51:06","guid":{"rendered":"http:\/\/www.myza.co.za\/02\/s-africa-bonds-weaken-on-rates-expectations-rand-firm\/"},"modified":"2012-02-09T13:51:06","modified_gmt":"2012-02-09T11:51:06","slug":"s-africa-bonds-weaken-on-rates-expectations-rand-firm","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africa-bonds-weaken-on-rates-expectations-rand-firm\/","title":{"rendered":"S.Africa bonds weaken on rates expectations, rand firm"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG<\/span> Feb 9 (Reuters) &#8211; South Africa&#8217;s rand<br \/>\nheld firm against the dollar on Thursday but government bonds<br \/>\nretreated as investors priced in the chance of interest rates<br \/>\nrising by year-end, with most of the selling coming at the<br \/>\nshorter end of the curve.<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>The yield on the three year benchmark added 2.5<br \/>\nbasis points to 6.605 percent, its highest since Jan. 27, and<br \/>\nthat for the longer-dated 2026 issue rose 3.5 basis<br \/>\npoints to 8.265 percent.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;From our perspective the short end of the local curve was<br \/>\ncomparably a bit overbought in previous weeks and that bias has<br \/>\nheld for some time now, especially as we see rate hike<br \/>\nexpectations starting to gain some traction,&#8221; ETM market analyst<\/p>\n<p><span><\/span><\/p>\n<p>Sean McCalgan said.<\/p>\n<p><span><\/span><\/p>\n<p>However, the selling was offset by continued demand from<br \/>\nforeign investors attracted by higher yields on the local market<br \/>\nrelative to overseas rates.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;From what we&#8217;ve seen recently there&#8217;s still been a positive<br \/>\nimpact from foreign investors. Certainly the portfolio flows<br \/>\ndata shows bonds inflows are still a lot more healthy than<br \/>\nequity flows, even though the equity market has been rising<br \/>\nquite steadily,&#8221; McCalgan added.<\/p>\n<p><span><\/span><\/p>\n<p>The debt market is pricing in a chance that the central bank<br \/>\nmight start hiking rates from the last quarter of 2012 or early<br \/>\n2013 after keeping them steady for the past year.<\/p>\n<p><span><\/span><\/p>\n<p>By 0653 GMT the rand was up 0.14 percent at 7.5441<br \/>\nagainst the dollar, within sight of Tuesday&#8217;s five-month high of<br \/>\n7.52.<\/p>\n<p><span><\/span><\/p>\n<p>It took its cue from the euro, the currency of South<br \/>\nAfrica&#8217;s main trading partner, which hit a two-month high on<br \/>\nhopes that Greece was inching closer to a debt bailout deal.<\/p>\n<p><span><\/span><\/p>\n<p>Concerns that Greece and other European countries might<br \/>\ndefault dented risk sentiment last year, hitting emerging<br \/>\nmarkets. The rand lost 23 percent against the dollar but has<br \/>\nclawed back nearly 7 percent of its value this year.\t<\/p>\n<p> (Reporting by Stella Mapenzauswa; Editing by Ed Cropley)<\/p>\n<p><span><\/span><\/p>\n<p class=\"copyright\">\n<p>         \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"<p>JOHANNESBURG Feb 9 (Reuters) &#8211; South Africa&#8217;s rand held firm against the dollar on Thursday but government bonds retreated as investors priced in the chance of interest rates rising by year-end, with most of the selling coming at the shorter end of the curve. The yield on the three year benchmark added 2.5 basis points [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-7824","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=7824"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7824\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=7824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=7824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=7824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}